Dividend stocks from the services sector with very low forward P/E ratios originally published at "long-term-investments.blogspot.com". Recently I made a screen of the most profitable stocks from the Dividend Aristocrats index. I thought that it makes sense to know what kind of stocks have the highest degree of profitability. The results were impressive and some of my readers liked the idea.
Today I like to screen my Dividend Champions database by the most profitable stocks, measured by the operating margin. Because of the higher amount of screening members - the Dividend Champions list is nearly twice as big as the Dividend Aristocrats index; the results show some fresh ideas.
The 20 top stocks have a margin between 24.8 and 45.7 percent. Eleven of them are currently recommended to buy.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 19.97 and forward P/E ratio is 17.34. The dividend yield has a value of 2.60 percent. Price to book ratio is 4.59 and price to sales ratio 4.50. The operating margin amounts to 32.44 percent and the beta ratio is 0.94. Stocks from the list have an average debt to equity ratio of 0.92.
Related stock ticker symbols:
TROW, FRT, HCP, CBSH, CTBI, BEN, UBSI, SRCE, STR, EV, CTWS, MCD, NFG, HP, MO, EGN, MHP, MDT, MSEX, SIAL